Market close: Volatile global markets continue to drag down local index

The three major United States indices now back in bear market territory. Photo / AP

New Zealand shares continued to be dragged down by the volatile global markets, with the three major United States indices now back in bear market territory.

The S&P/NZX 50 Index was bucking the trend in the morning by reaching a high of 11,256.58 but it fell sharply in the afternoon, closing down 94.92 points or 0.85 per cent to 11,119.57 – a 10-week low.

The index has fallen 2.78 per cent in two days and is down more than 15 per cent so far this year.

There were 45 gainers and 87 decliners on the main board with 36.22 million shares worth $129.62 million changing hands.

Dan Stratful, investment adviser with Forsyth Barr, said it's the second day of catch-up for the local market after being closed on Monday and the global markets are performing pretty poorly.

Interest rates are now on a higher trajectory than was expected a few weeks ago, he said. The US 2 Year Treasury Note Bond yield (at 4.291 per cent) is now higher than the 10 Year (3.986 per cent) and over many years now the inverted yield has indicated a probable economic recession.

In the US, the Dow Jones Industrial Average re-entered the bear market (down 21.4 per cent from its January all-time high) after declining 0.43 per cent to 29,134.99 points. S&P 500 and Nasdaq Composite had already reached the mark, falling 24.7 per cent and 33 per cent from their highs. The Nasdaq overnight was up 0.25 per cent to 10,829.5 points.

Across the Tasman, the S&P/ASX 200 Index was down 0.74 per cent to 6448.2 points at 6pm NZ time.

The NZ dollar was trading at US55.91c against the American greenback after reaching an intraday high of US56.45c.

The Warehouse declined 21c or 6.1per cent to $3.23 after reporting its second highest group sales of $3.29 billion for the year ending July, with net profit falling 19.3 per cent to $87.08m. Group online sales increased 39.8 per cent, making up 15.3 per cent of the revenue. The group is paying a final dividend of 10c a share on December 2.

Fellow retailers Briscoe Group was up 5c to $5.35, Michael Hill gained 4c or 3.05 per cent to $1.35; KMD Brands declined 3c or 2.86 per cent to $1.02; and Hallenstein Glasson was down 7c to $5.05.

Synlait Milk picked up 16c or 4.75 per cent to $3.53 following its solid 12-month result; Freightways recovered 10c to $9.95; and AFT Pharmaceuticals was up 5c to $3.38.

Scales Corporation added 23c or 4.94 per cent to $4.89 after announcing it is expanding its proteins business in Australia. Vulcan Steel rebounded 16c or 2.07 per cent to $7.88.

In the energy sector, Genesis – now ex-dividend – was down 9c or 3.28 per cent to $2.65; Mercury declined 16c or 2.78 per cent to $5.59; Manawa decreased 19c or 3.28 per cent to $5.61; Vector increased 13c or 3.16 per cent to $4.24; and Meridian was up 3c to $4.94.

The property sector was again weak. Goodman Trust was down 6.5c or 3.18 per cent to $1.98; Investore declined 5c or 3.21 per cent to $1.51; Kiwi Property decreased 3.5c or 3.8 per cent to 88.5cp; and Vital Healthcare Trust fell 11c or 4.33 per cent to $2.43.

Property for Industry, up 0.005c to $2.385, is selling a New Plymouth property to the tenant Aviagen for $4.9m, with a June valuation of $4.35. It also has a conditional agreement to sell the neighbouring property.

Ryman Healthcare decreased 24c or 2.74 per cent to $8.52. Radius Care, unchanged at 31c, has completed the $17.1m purchase of Matamata Country Lodge - with 40 units and a care home of 85 beds - and three neighbouring properties. Radius is planning to build 18 additional villas at its fourth retirement village.

Spark was down 15.5c or 3.02 to $4.97; Napier Port declined 7c or 2.37 per cent to $2.88; Mainfreight shed $1 to $67.70; Heartland Group fell 8c or 4.71 per cent to $1.62; Serko decreased 9c or 2.83 per cent to $3.09; and Vista Group was down 10c or 6.1 per cent to $1.584.

T&G Global declined 6c or 2.22 per cent to $2.64; Harmoney fell 5c or 6.41 per cent to 73c; Smartpay was down 5c or 6.76 per cent to 69; and Bremworth decreased 2.5c or 4.9 per cent to 48.5 per cent.

NZ King Salmon Investments, hit by seafarm mortalities, slipped 0.005c or 2.27 per cent to 21.5c after reporting a loss of $24.48m, down 338 per cent, on steady income of $80m for the six months ending July. Sales volumes decreased 21 per cent to 2886 tonnes, from 3669 tonnes.

SkyTV dropped 6c to $2.17.